Sleeperz Hotel Newcastle, a 98-bedroom premium budget lifestyle hotel on Westgate Road, has reported excellent year-on-year growth on the eve of the second anniversary of its opening.
Long term decline in Newcastle’s hospitality market?
The hotel’s achievements are good news for Newcastle’s hospitality market which commercial property experts say is showing signs of long term decline and established operators argue is in danger of being overwhelmed by over-supply and new entrants.
The hotel opened in January 2012, as a modern reinvention of a classic British railway hotel, less than two minutes’ walk from Newcastle Central Station, built on the site of a former Parcel Works across two original railway arches bordering the northbound East Coast mainline.
Sleeperz Newcastle’s strong second year (year-on-year comparison to 2012):
- 13% increase in occupancy
- 12% increase in revenue
- 13% growth in profits
- 12.5% increase in REV PAR (revenue per available room)
- An occupancy rate of 75% – 5% above the national average – nearly 40,000 guests (up 5,000)
David Myers, chief executive of Sleeperz Hotels, said: “There’s no doubting that hospitality is a tough market in Newcastle Gateshead and, whilst the city continues to attract established hotel brands and new operators, the overall Newcastle hotel market performance is in long-term decline.
“Sleeperz Hotel Newcastle has been very successful and that’s mainly due to our unrivalled location but also our distinctive brand identity. Sleeperz is different to many of its competitors, we offer stylish contemporary city living in a prime location at budget prices.
“We also deliver great customer service and are Newcastle’s highest ranking city centre budget hotel on TripAdvisor and Booking.com, making us attractive to both leisure and business travellers.’’
Top Overall Ratings Award
This month, Sleeperz Newcastle received a Top Overall Ratings Award from users of Venere.com – the leader in online hotel reservations and part of the Expedia.com group – placing it among the top 5,000 properties from Venere’s portfolio of 135,000 worldwide accommodations.
Sleeperz’ success is in stark contrast to a growing number of established operators who have found trading difficult and say there are simply too many hotels and too many beds in Newcastle and Gateshead.
Future Hotel openings on Tyneside
- A 251 bed Crowne Plaza is to open in the regenerated Stephenson Quarter
- A 100 bedroom Tune Hotel is planned close to Newcastle’s Quayside
- Motel One plans to open a 222 room luxury budget hotel in High Bridge Street
- Premier Inn plans a 260-bed hotel in the former Co-op building on Newgate Street
- Grey Street Hotel has new owners, the Malhotra Group, planning a multi-million pound refurbishment
About Sleeperz
Sleeperz Hotels is a new and innovative UK budget hotels business which opened its first UK hotel in the Welsh capital Cardiff in 2008 followed by a 98-bedroom Newcastle hotel in 2012 and a new ‘rooms based’ sister brand called Cityroomz, which opened in Edinburgh in May 2013.
Sleeperz is working to a plan to expand and build further hotels in major UK cities, including Glasgow, London and Manchester.
Sleeperz prides itself on introducing a new generation of design-led premium budget hotels into the UK hotels market and creating a philosophy of colourful, stylish, compact contemporary rooms at affordable room rates.
Videos detailing the hotel experience are available to watch on YouTube at the following link: www.youtube.com/sleeperzhotels
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